The State Bank of India (SBI) has launched a campaign to persuade farmers to clear all crop loan dues immediately to get benefits including interest subvention. The bank has already disbursed more than Rs. 320 crore as crop loans to 71,000 farmers in the district.
As many as 35,000 farmers are eligible for loan waiver.
The SBI has asked all farmers to clear their existing debts, so that those above the Rs. 50,000 loan category will get 20 per cent waiver as announced by the government.
Farmers have also been told that they will have to pay 12 per cent interest if they do not clear the instalments immediately.
SBI Srikakulam Regional Manager D. Raja Rama Mohana Rao said interest subvention was a boon, and the benefit would go to farmers who cleared debts .
“We request gold loan borrowers to clear loans immediately, as non-operation of accounts will be treated as non-performing assets. Gold loans can be cleared in three years in normal conditions. But, they will be also treated as NPAs if account holders failed to clear their crop loans. Then, the bank will have every right to auction the gold,” he added.
